WFC Earnings Vs. CPI, What Matters Most?

Wells Fargo released earnings that beat analysts estimates giving a much-needed boost of confidence to financials.  The company also increased its dividend by 10%.  Although Wells Fargo earned $1.75 billion, a 23% decrease from the prior year, revenues were up 10.3%.  You can read more specific details of their earnings here.  Wells Fargo's stock is up on the news, as are the stocks of other large money center banks in the hopes that things maybe won't be so bad when they report earnings in the next couple of days.  In this environment, a plus sign in front the net income column is greeted with huge cheers.  Can BAC with its Countrywide acquisition, JPM with its Bear acquisition, and Citigroup with its asset-puking do the same?  I'm skeptical, as usual.

Meanwhile, in economic news, the CPI report was none too friendly.  The headline number was up a whopping 1.1% and the core was up .3%.  The CPI release knocked Dow futures back down to earth after they had leapt on the WFC news.  The market is flat, while investors duke it out over what is more important: surging headline inflation?  Or the fact that maybe a bank or two might be left standing after the worst is over?  If the worst really was over, it would be easier to tell.